Budget hits ABC, SBS, Screen Aust, Australia Network.

Federal Budget 2014

• ABC, SBS lose 1% of their budget.
• ABC to lose contract for Australia Network
• $25.1m cut from Screen Australia
• $3.3m cut from ACMA

ABC / SBS
The ABC and SBS will lose 1% of their operating budgets at a total of $43.5m over four years, under the Abbott Government’s Federal Budget handed down in Parliament tonight.

The ABC will lose about $35 million and SBS about $8 million.

But while the cuts are not as deep as anticipated, the Budget papers indicate they are a “down payment on the ABC and SBS Efficiency Study.” It hints at further pain to come.

Funding to end for online disability website, ABC Ramp Up.

ABC’s Managing Director, Mark Scott said:

“The funding cuts will be disappointing for audiences. The government gave repeated commitments before and after the election that funding for the Corporation would be maintained.

“The ABC is very tightly geared. We have been diligent in reducing backroom costs over recent years to ensure the ABC can deliver better and more varied content to our audiences. That strategy has enabled the ABC to self-fund important new initiatives like iview, ABC News24, ABC Unearthed and a range of other new digital services.

“The task ahead will be extremely challenging for ABC management and staff.

“We will need to make funding cuts, while trying to also save money to invest in new priorities to ensure the ABC remains a compelling feature of the Australian media landscape – a public broadcaster in the digital era.”

SBS Managing Director Michael Ebeid said:

“SBS is already a lean and underfunded organisation and as such the $2 million per year funding cut announced in tonight’s Budget will be felt across the organisation. However, we fully recognise that this is a tough Budget.

“Through various government review processes, the Board and I have demonstrated that SBS has a lean and agile culture, with innovative employees that are, by necessity, highly-skilled at delivering more with less. We would be concerned should there be a further reduction in our funding as this would invariably impact on our content and audiences and, in turn, on our commercial revenue.

“As SBS does rely heavily on commercial revenues, we regularly plan for changes to our overall funding and will now identify savings to absorb this funding cut which minimises the impact on SBS content and our audiences.

“SBS is an efficient organisation which delivers enormous value to the Australian community with its modest funding, and providing services that reflect our unique multicultural Charter will only become more important as Australia continues to grow in cultural complexity.”

AUSTRALIA NETWORK
As previously rumoured, the government is terminating the $223m contract between the ABC and DFAT’s Australia Network.

The international television service was established by the ABC in 1993, then known as ATVI. The ABC is 1 year into its current 10 year contract.

The Government will save $196.8 million over nine years by terminating the Australia Network contract.

ABC’s Managing Director, Mark Scott said:

“Countries around the world are expanding their international broadcasting services as key instruments of public diplomacy. The ABC had negotiated a detailed strategy with DFAT to develop relationships with major broadcasters in the region and to target locals likely to trade, study in or travel to Australia. This partnership had resulted in expanded audiences in key markets and was on track to deliver all agreed targets.

“This decision runs counter to the approach adopted by the vast majority of G-20 countries who are putting media at the centre of public diplomacy strategies to engage citizens in other countries.

“It sends a strange message to the region that the government does not want to use the most powerful communication tools available to it to talk to our regional neighbours about Australia.

“The agreed strategy with DFAT based on broadcasting, online partnerships and social media was proving successful. This decision cannot be justified in terms of performance against agreed priorities.”

SCREEN AUSTRALIA
The Arts budget is to be cut by $87.1m, comprising large cuts to the Australia Council, with $25.1m cut from Screen Australia across four years.

The Australian Interactive Games Fund will cease.

Matthew Deaner, Executive Director, Screen Producers Australia, said:

“The ABC, SBS and Screen Australia are essential partners to the independent production sector in Australia. Their investments trigger millions of dollars of local and international financing into productions which employ thousands of Australians.

“We recognize the need for efficiencies, but they will take time to implement and we must sure that the search for efficiencies does not undermine core business.

“As expected the Government has taken a more level headed approach in this budget. Screen producers look forward to continuing our strong working relationship with the Government. We will continue to discuss the most appropriate levers of support, with particular emphasis on the producer offset, to further drive investment and innovation in our industry and we call on the Federal Government to reaffirm its ongoing commitment to the creation of quality film and television by a dynamic Australian independent production sector.”

ACMA
The government will cut $3.3million over 4 years from the Australian Communications and Media Authority. The ACMA will also be hit via the 2.5% efficiency dividend, a series of compounding cuts, that applies to most government agencies.

This post updates.

Sources: Fairfax, Guardian Australia, ABC